2020 -- H 8040 | |
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LC005382 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
AUTHORIZING THE CITY OF NEWPORT TO ISSUE NOT TO EXCEED $106,500,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE ALL COSTS RELATING TO THE CONSTRUCTION, | |
RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, | |
FURNISHING AND EQUIPPING OF: (I) AN ADDITION TO THE CLAIBORNE PELL | |
ELEMENTARY SCHOOL, INCLUDING, BUT NOT LIMITED TO, CLASSROOMS AND | |
ASSOCIATED SUPPORT SPACE, SITE IMPROVEMENTS, AND PARKING AND (II) A | |
NEW SCHOOL FACILITY FOR THE WILLIAM S. ROGERS HIGH SCHOOL, PROVIDED | |
THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN | |
GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND | |
DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING | |
AUTHORITY | |
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Introduced By: Representatives Abney, Carson, and Ruggiero | |
Date Introduced: June 18, 2020 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. The city of Newport is hereby authorized, in addition to authority previously |
2 | granted, to issue bonds and other evidences of indebtedness (hereinafter “bonds”) up to an amount |
3 | not exceeding one hundred six million five hundred thousand dollars ($106,500,000) from time to |
4 | time under its corporate name and seal or a facsimile of such seal. The bonds of each issue may be |
5 | issued in the form of serial bonds or term bonds or a combination thereof and shall be payable |
6 | either by maturity of principal in the case of serial bonds or by mandatory sinking fund installments |
7 | in the case of term bonds, in annual installments of principal, the first installment to be not later |
8 | than five (5) years and the last installment not later than thirty (30) years after the date of the bonds. |
9 | All such bonds of a particular issue may be issued in the form of zero coupon bonds, capital |
10 | appreciation bonds, serial bonds or term bonds or a combination thereof. The amount of principal |
11 | appreciation each year on any bonds, after the date of original issuance, shall not be considered to |
12 | be principal indebtedness for the purposes of any constitutional or statutory debt limit or any other |
13 | limitation. The appreciation of principal after the date of original issue shall be considered interest. |
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1 | Only the original principal amount shall be counted in determining the principal amount so issued |
2 | and any interest component shall be disregarded. |
3 | SECTION 2. The city may be eligible for school housing aid reimbursement on debt |
4 | service pursuant to chapter 7 of title 16, or for a grant, loan or other financial assistance from |
5 | proceeds of bonds issued by the state of Rhode Island (the “state”), from the Rhode Island |
6 | department of education (“RIDE”) or from the Rhode Island school building authority. The amount |
7 | of borrowing authorized pursuant to this act shall be reduced by the amount of certain grants |
8 | actually received by the city from state bond proceeds, from RIDE or from the Rhode Island |
9 | school building authority; provided however, that the amount of borrowing authorized shall not be |
10 | reduced by the amount of any grant received by the city for any portion of the projects funded by |
11 | capital reserve funds. |
12 | SECTION 3. The bonds shall be signed by the city director of finance and by the manual |
13 | or facsimile signature of the mayor and be issued and sold in such amounts as the city council may |
14 | determine by resolution. The manner of sale, denominations, maturities, interest rates and other |
15 | terms, conditions and details of any notes or bonds issued under this act may be fixed by the |
16 | proceedings of the city council authorizing the issue or by separate resolution of the city council |
17 | or, to the extent provisions for these matters are not so made, they may be fixed by the officers |
18 | authorized to sign the bonds or notes. Notwithstanding anything contained in this act to the |
19 | contrary, the city may enter into financing agreements with the Rhode Island Health and |
20 | Educational Building Corporation pursuant to chapter 7 of title 16 and chapter 38.1 of title 45 and, |
21 | with respect to bonds or notes issued in connection with such financing agreements, if any, the city |
22 | may elect to have the provisions of chapter 38.1 of title 45 apply to the issuance of the bonds or |
23 | notes issued hereunder to the extent the provisions of chapter 38.1 of title 45 are inconsistent |
24 | herewith. In addition, the city may enter into financing agreements with the Rhode Island |
25 | Infrastructure Bank pursuant to the provisions of chapter 12.2 of title 46 and, with respect to notes |
26 | or bonds issued in connection with such financing agreements, if any, the city may elect to have |
27 | the provisions of chapter 12.2 of title 46 apply to the issuance of the bonds or notes issued hereunder |
28 | to the extent the provisions of chapter 12.2 of title 46 are inconsistent herewith. Such election may |
29 | be fixed by the proceedings of the city council authorizing such issuance by separate resolution of |
30 | the city council, or, to the extent provisions for these matters are not so made, they may be fixed |
31 | by the officers authorized to sign the bonds or notes. The proceeds derived from the sale of the |
32 | bonds shall be delivered to the city director of finance, and such proceeds, exclusive of premiums |
33 | and accrued interest, shall be expended: (1) To finance all costs relating to the |
34 | construction, renovation, improvement, alteration, repair, landscaping, furnishing and equipping |
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1 | of: (i) An addition to the Claiborne Pell Elementary School including, but not limited to, classrooms |
2 | and associated support space, site improvements, and parking; and (ii) A new school facility for |
3 | the William S. Rogers High School (the “projects”); (2) In payment of the principal of or interest |
4 | on temporary notes issued under section 4; (3) In repayment of advances under section 5; (4) In |
5 | payment of related costs of issuance of any bonds or notes; and/or (5) In payment of capitalized |
6 | interest during construction of the projects. No purchaser of any bonds or notes under this act shall |
7 | be in any way responsible for the proper application of the proceeds derived from the sale thereof. |
8 | The proceeds of bonds or notes issued under this act, any applicable federal or state assistance and |
9 | the other monies referred to in sections 7 and 10 shall be deemed appropriated for the purposes of |
10 | this act without further action than that required by this act. The bonds authorized by this act may |
11 | be consolidated for the purpose of issuance and sale with any other bonds of the city heretofore or |
12 | hereafter authorized, provided that, notwithstanding any such consolidation, the proceeds from the |
13 | sale of the bonds authorized by this act shall be expended for the purposes set forth above. |
14 | SECTION 4. The city council may by resolution authorize the issuance from time to time |
15 | of interest bearing or discounted notes in anticipation of the issue of bonds under section 3 or in |
16 | anticipation of the receipt of federal or state aid for the purposes of this act. The amount of original |
17 | notes issued in anticipation of bonds may not exceed the amount of bonds which may be issued |
18 | under this act and the amount of original notes issued in anticipation of federal or state aid may not |
19 | exceed the amount of available federal or state aid as estimated by the city director of finance. |
20 | Temporary notes issued hereunder shall be signed by the manual or facsimile signatures of the city |
21 | director of finance and the mayor and shall be payable within five (5) years from their respective |
22 | dates, but the principal of and interest on notes issued for a shorter period may be renewed or paid |
23 | from time to time by the issue of other notes hereunder, provided the period from the date of an |
24 | original note to the maturity of any note issued to renew or pay the same debt or the interest thereon |
25 | shall not exceed five (5) years. Any temporary notes in anticipation of bonds issued under this |
26 | section may be refunded prior to the maturity of the notes by the issuance of additional temporary |
27 | notes, provided that no such refunding shall result in any amount of such temporary notes |
28 | outstanding at any one time in excess of two hundred percent (200%) of the amount of bonds which |
29 | may be issued under this act, and provided further that if the issuance of any such refunding notes |
30 | results in any amount of such temporary notes outstanding at any one time in excess of the amount |
31 | of bonds which may be issued under this act, the proceeds of such refunding notes shall be deposited |
32 | in a separate fund established with the bank which is paying agent for the notes being refunded. |
33 | Pending their use to pay the notes being refunded, monies in the fund shall be invested for the |
34 | benefit of the city by the paying agent at the direction of the city director of finance in any |
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1 | investment permitted under section 6. The monies in the fund and any investments held as a part |
2 | of the fund shall be held in trust and shall be applied by the paying agent solely to the payment or |
3 | prepayment of the principal of and interest on the notes being refunded. Upon payment of all |
4 | principal of and interest on the notes, any excess monies in the fund shall be distributed to the city. |
5 | The city may pay the principal of and interest on notes in full from other than the issuance of |
6 | refunding notes prior to the issuance of bonds pursuant to section 1 hereof. In such case, the city's |
7 | authority to issue bonds or notes in anticipation of bonds under this act shall continue provided |
8 | that: (1) The city council passes a resolution evidencing the city's intent to pay off the notes without |
9 | extinguishing the authority to issue bonds or notes; and (2) That the period from the date of an |
10 | original note to the maturity date of any other note shall not exceed five (5) years. |
11 | SECTION 5. Pending any authorization or issue of bonds hereunder or pending or in lieu |
12 | of any authorization or issue of notes hereunder, the city director of finance, with the approval of |
13 | the city council may, to the extent that bonds or notes may be issued hereunder, apply funds in the |
14 | general treasury of the city to the purposes specified in section 3, such advances to be repaid without |
15 | interest from the proceeds of bonds or notes subsequently issued or from the proceeds of applicable |
16 | federal or state assistance or from other available funds. |
17 | SECTION 6. Any proceeds of bonds or notes issued hereunder or of any applicable federal |
18 | or state assistance, pending their expenditure may be deposited or invested by the city director of |
19 | finance, in demand deposits, time deposits or savings deposits in banks which are members of the |
20 | Federal Deposit Insurance Corporation or in obligations issued or guaranteed by the United States |
21 | of America or by any agency or instrumentality thereof or as may be provided in any other |
22 | applicable law of the state of Rhode Island or resolution of the city council or pursuant to an |
23 | investment policy of the city. |
24 | SECTION 7. Any accrued interest received upon the sale of bonds or notes hereunder shall |
25 | be applied to the payment of the first interest due thereon. Any premiums arising from the sale of |
26 | bonds or notes hereunder and, to the extent permitted by applicable federal laws, any net earnings |
27 | or profits realized from the deposit or investment of funds hereunder shall, in the discretion of the |
28 | city director of finance, be applied to the cost of preparing, issuing, and marketing bonds or notes |
29 | hereunder to the extent not otherwise provided, to the payment of the cost of the projects, to the |
30 | payment of the principal of or interest on bonds or notes issued hereunder, to the revenues of the |
31 | city and dealt with as part of the revenues of the city from property taxes to the extent permitted by |
32 | federal law, or to any one or more of the foregoing. The cost of preparing, issuing, and marketing |
33 | bonds or notes hereunder may also, in the discretion of the city director of finance, be met from |
34 | bond or note proceeds exclusive of premium and accrued interest or from other monies available |
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1 | therefor. Any balance of bond or note proceeds remaining after payment of the cost of the projects |
2 | and the cost of preparing, issuing and marketing bonds or notes hereunder shall be applied to the |
3 | payment of the principal of or interest on bonds or notes issued hereunder. To the extent permitted |
4 | by applicable federal laws, any earnings or net profit realized from the deposit or investment of |
5 | funds hereunder may, upon receipt, be added to and dealt with as part of the revenues of the city |
6 | from property taxes. In exercising any discretion under this section, the city director of finance shall |
7 | be governed by any instructions adopted by resolution of the city council. |
8 | SECTION 8. All bonds and notes issued under this act and the debt evidenced thereby shall |
9 | be obligatory on the city in the same manner and to the same extent as other debts lawfully |
10 | contracted by it and shall be excepted from the operation of § 45-12-2 and any provision of the city |
11 | charter. No such obligation shall at any time be included in the debt of the city for the purpose of |
12 | ascertaining its borrowing capacity. The city shall annually appropriate a sum sufficient to pay the |
13 | principal and interest coming due within the year on bonds and notes issued hereunder to the extent |
14 | that monies therefor are not otherwise provided. If such sum is not appropriated, it shall |
15 | nevertheless be added to the annual tax levy. In order to provide such sum in each year and |
16 | notwithstanding any provisions of law to the contrary, all taxable property in the city shall be |
17 | subject to ad valorem taxation by the city without limitation as to rate or amount. |
18 | SECTION 9. Any bonds or notes issued under the provisions of this act, if properly |
19 | executed by the officers of the city in office on the date of execution, shall be valid and binding |
20 | according to their terms notwithstanding that before the delivery thereof and payment therefor any |
21 | or all of such officers shall for any reason have ceased to hold office. |
22 | SECTION 10. The city, acting by resolution of its city council is authorized to apply for, |
23 | contract for and expend any federal or state advances or other grants of assistance which may be |
24 | available for the purposes of this act, and any such expenditures may be in addition to other monies |
25 | provided in this act. To the extent of any inconsistency between any law of this state and any |
26 | applicable federal law or regulation, the latter shall prevail. Federal and state advances, with interest |
27 | where applicable, whether contracted for prior to or after the effective date of this act, may be |
28 | repaid as a cost of the projects under section 3. |
29 | SECTION 11. Bonds and notes may be issued under this act without obtaining the approval |
30 | of any governmental agency or the taking of any proceedings or the happening of any conditions |
31 | except as specifically required by this act for such issue. In carrying out any project financed in |
32 | whole or in part under this act, including where applicable the condemnation of any land or interest |
33 | in land, and in the levy and collection of assessments or other charges permitted by law on account |
34 | of any such project, all action shall be taken which is necessary to meet constitutional requirements |
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1 | whether or not such action is otherwise required by statute, but the validity of bonds and notes |
2 | issued hereunder shall in no way depend upon the validity or occurrence of such action. |
3 | SECTION 12. The city director of finance and the mayor, on behalf of the city are hereby |
4 | authorized to execute such instruments, documents or other papers as either of them deem necessary |
5 | or desirable to carry out the intent of this act and are also authorized to take all actions and execute |
6 | all documents necessary to comply with federal tax and securities laws, which documents or |
7 | agreements may have a term coextensive with the maturity of the bonds authorized hereby, |
8 | including Rule 15c2-12 of the Securities and Exchange Commission (the "Rule") and to execute |
9 | and deliver a continuing disclosure agreement or certificate in connection with the bonds or notes |
10 | in the form as shall be deemed advisable by such officers in order to comply with the Rule. |
11 | SECTION 13. All or any portion of the authorized but unissued authority to issue bonds |
12 | and notes under this act may be extinguished by resolution of the city council, without further action |
13 | by the general assembly, seven (7) years after the effective date of this act. |
14 | SECTION 14. The question of the approval of this act shall be submitted to the electors of |
15 | the city at the general election to be held on November 3, 2020 or, if so determined by the city |
16 | council, at a special city-wide election, other than a primary, held on a date to be determined by |
17 | resolution of the city council. The question shall be submitted in substantially the following form: |
18 | "Shall an act passed at the 2020 session of the general assembly entitled 'AN ACT AUTHORIZING |
19 | THE CITY OF NEWPORT TO ISSUE NOT TO EXCEED $106,500,000 GENERAL |
20 | OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF INDEBTEDNESS TO |
21 | FINANCE ALL COSTS RELATING TO THE CONSTRUCTION, RENOVATION, |
22 | IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, FURNISHING AND |
23 | EQUIPPING OF: (I) AN ADDITION TO THE CLAIBORNE PELL ELEMENTARY |
24 | SCHOOL, INCLUDING, BUT NOT LIMITED TO, CLASSROOMS AND ASSOCIATED |
25 | SUPPORT SPACE SITE IMPROVEMENTS, AND PARKING AND (II) A NEW SCHOOL |
26 | FACILITY FOR THE WILLIAM S. ROGERS HIGH SCHOOL, PROVIDED THAT THE |
27 | AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN GRANTS |
28 | RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND |
29 | DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING |
30 | AUTHORITY' be approved?" and the warning for the election shall contain the question to be |
31 | submitted. From the time the election is warned and until it is held, it shall be the duty of the city |
32 | clerk to keep a copy of the act available at the clerk's office for public inspection, but the validity |
33 | of the election shall not be affected by this requirement. To the extent of any inconsistency between |
34 | this act and the city charter or any law of special applicability to the city, this act shall prevail. |
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1 | SECTION 15. This act shall constitute an enabling act of the general assembly that is |
2 | required pursuant to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under |
3 | this act for school projects shall not be eligible for state aid reimbursement pursuant to § 16-7-44 |
4 | unless the school projects described herein have been approved by RIDE. |
5 | SECTION 16. Sections 14 and 15 shall take effect upon the passage. The remainder of this |
6 | act shall take effect upon the approval of this act by a majority of those voting on the question at |
7 | the election prescribed by section 14. |
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LC005382 | |
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EXPLANATION | |
OF | |
A N A C T | |
AUTHORIZING THE CITY OF NEWPORT TO ISSUE NOT TO EXCEED $106,500,000 | |
GENERAL OBLIGATION BONDS, NOTES AND OTHER EVIDENCES OF | |
INDEBTEDNESS TO FINANCE ALL COSTS RELATING TO THE CONSTRUCTION, | |
RENOVATION, IMPROVEMENT, ALTERATION, REPAIR, LANDSCAPING, | |
FURNISHING AND EQUIPPING OF: (I) AN ADDITION TO THE CLAIBORNE PELL | |
ELEMENTARY SCHOOL, INCLUDING, BUT NOT LIMITED TO, CLASSROOMS AND | |
ASSOCIATED SUPPORT SPACE, SITE IMPROVEMENTS, AND PARKING AND (II) A | |
NEW SCHOOL FACILITY FOR THE WILLIAM S. ROGERS HIGH SCHOOL, PROVIDED | |
THAT THE AUTHORIZATION SHALL BE REDUCED BY THE AMOUNT OF CERTAIN | |
GRANTS RECEIVED FROM STATE BOND PROCEEDS, FROM THE RHODE ISLAND | |
DEPARTMENT OF EDUCATION OR FROM THE RHODE ISLAND SCHOOL BUILDING | |
AUTHORITY | |
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1 | This act would authorize the city of Newport to issue not more than $106,500,000 general |
2 | obligation bonds, notes and other evidences of indebtedness to finance all costs relating to the |
3 | Claiborne Pell Elementary School the construction, renovation, improvement, alteration, repair, |
4 | landscaping, furnishing and equipping of: (i) An addition to the Claiborne Pell Elementary School, |
5 | including, but not limited to, classrooms and associated support space site improvements, and |
6 | parking and (ii) A new school facility for the William S. Rogers High School, provided that the |
7 | authorization shall be reduced by the amount of certain grants received from State bond proceeds, |
8 | from the Rhode Island Department of Education or from the Rhode Island School Building |
9 | Authority. |
10 | This act would constitute an enabling act of the general assembly that is required pursuant |
11 | to § 16-7-44. Any bonds, notes or other evidences of indebtedness issued under this act for school |
12 | projects shall not be eligible for state aid reimbursement pursuant to § 16-7-44 unless the school |
13 | projects described herein have been approved by the Rhode Island Department of Education |
14 | ("RIDE"). |
15 | Sections 15 and 16 would take effect upon passage. The remainder of the act would take |
16 | effect upon approval of the question provided for in section 15. |
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